Recently I have been posting answers to questions on yahoo.  It is fun.  Here is one I did today.

Question:

Will the price of gold continue to rise?

My Answer:

Well no one has a crystal ball.  It could go up or go down. But one can read the signs and make projections.

I assume when you say price, you mean dollars per ounce.  Much of the rise in the price of gold was really a reduction in the value of the dollar, some was the demand for gold.  It is all really supply and demand.  The price per dollar of gold will depend a lot on how much money is created in the world, how much credit is out there.  In 2007 the trend was to create a ton of money, and with the low interest rates now going into effect it will do the same thing.

So it all boils down to a bet, do you bet it will go up or down, I say it is a 65% chance it will go up in the next year and a 35% chance it will go down.  I do think you may have a higher percent return on silver than on gold, simply because silver is very useful in many things and is in growing demand, and the supply is not growing as fast.

Also no matter what metal you choose to buy, I would highly suggest you buy the actual metal, not a paper title saying you have ownership.  The best way to do this is simply walk into to any coin shop and buy it.

Gold is a great hedge to inflation, but I do think that many other things would be a better investment right now.